Buying a Home? Here’s What You Need To Know

…Choosing the right home loan has become more and more

difficult as the lending industry has become more competitive and harder to navigate through….[Here’s] a look at some of the things you should be aware of. 

What you need to think about

…Always look at the big picture. If you are being offered:

• a low interest rate
  • the fees will often be high,
• a lot of features either
  • the fees will be high or
  • the interest rate will be high.

…It’s important to know what you really want from a home loan…

• what finances you need to be applicable and
• what features you really need…
• what amount of deposit you can afford to pay…

What all of this means is that you need to be realistic in deciding whether you can afford a property and the home loan that goes with purchasing it.

What to look out for in a loan

• …Can you make additional payments without being penalised? This…[would] be useful…[were] your circumstances [to] change.
• Can…[you] re-fix the interest rate on your loan?

How to find the right lender

…Do some research…

• Check out independent lender reviews and…
• [get] advice from people you know who have already used the lender…
• [determine] where their customer service team [is] based in case you have any problems in the future and need their help:
  • how big is it,
  • how easy is it to make contact?

Making sure you know the details

…Ask the right questions to make everything clearer…

• ask about the fees that are associated with the loan;
• make sure you state all fees so they cannot leave anything out.

You do not want to be landed with massive fees to pay down the line because you did not ask the right questions at the start.

The above are the main points that you need to consider when you are looking to apply for a home loan. Do not forget that if you find the whole process daunting and confusing if may be worth using a mortgage broker to help.

Disclosure: The original article, from EconMatters.com), was edited ([ ]) and abridged (…) by the editorial team at munKNEE.com (Your Key to Making Money!) to provide a fast and easy read.

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